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Upper Darby is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $144,192. The

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Upper Darby is considering a new capital investment. The following information is available on the investment. The cost of the machine will be $144,192. The annual cost savings if the new machine is acquired will be $40,000. The machine will have a useful life of 5 years, at which time the terminal disposal value is expected to be zero. Upper Darby is assuming no tax consequences. What is the internal rate of return (IRR)? a. 10.00%. b. 12.00% c. 14.00%. d. 16.00%. Lewington Corporation has purchased new equipment that cost $144,965. The equipment is expected to last three years and to provide cash inflows as follows: Year-1 $45,000 Year-2 $60,000 Year-3 2,22? Assuming that the equipment will have an internal rate of return of 12%, what is the expected cash inflow for year 3? a. $51,280 b. $80,000 c. $39,965 d. $56,130

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